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Permits <br />Permits would have to be obtained from the Minnesota Pollution Control Agency <br />(MPCA) and the Metropolitan Council Environmental Services (MCES) for the sanitary <br />sewer. A permit would have to be obtained from the Minnesota Dept. of Health (MDH) <br />for the water main. A permit would have to be obtained from the MPCA and governing <br />watershed district for the drainage and erosion control. <br />Estimated Costs <br />A detailed cost estimate is attached to this report. The estimate was developed based on <br />anticipated construction costs for the 2006 construction season. The estimate includes a <br />10% contingency for construction and a 35% administrative fee for legal, engineering, <br />administrative, and financing costs. The following is a summary of the project costs: <br />Area A <br />Area B <br />Total <br />Sanitary Sewer <br />$ 64,200 <br />$ 159,200 <br />$ 223,400 <br />Water Main <br />97,100 <br />227,400 <br />324,500 <br />Street <br />137,400 <br />344,500 <br />481,900 <br />Total <br />$298,700 <br />$731,100 <br />$1,029,8001 <br />1 Total reflects full reconstruction of street with installation of sanitary sewer and water main <br />Financing <br />Financing through assessments for this type of project can be limited. State Statute <br />provides guidance regarding the capacity to assess for public improvement projects. <br />Generally, assessments are limited to the increased property value for the benefited <br />properties unless specifically waived by the property owners. <br />The City, in past practice, has assessed the total cost of street rehabilitation projects. <br />Using this, the estimated assessment for each area is shown below. <br />Area A Area B <br />(14lots) (19lots) <br />Full Reconstruction $ 9,800 $ 18,100 <br />2" Overlay $3,000 $5,580 <br />The installation of new sanitary sewer and water main is typically fully assessed to the <br />benefited property. However, it is recommended that the cost of the installation not be <br />assessed at this time because no service will be available at the completion of the project. <br />Rather, if installed, it is recommended that the City finance the sanitary sewer and water <br />main improvements through other means while either deferring assessments or <br />developing specific connection charges that will recover costs related to the <br />improvements when service is available. <br />2006 Street Improvements A-GEMLK0503.00 <br />Gem Lake, Minnesota Page 5 <br />